Investor Glossary-cpiInvestor Glossary-cpiInvestor Glossary-cpiInvestor Glossary-cpiInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

CPI

The HTML to link to this page
 

CPI is the common abbreviation for the Consumer Price Index, which measures the change in prices urban Americans pay for a fixed basket of goods and services. The CPI encompasses over 80,000 consumer items in a wide range of categories, like apparel, medical care, and transportation. Besides the overall "headline" CPI, a "core" CPI is computed that excludes the somewhat volatile food and energy sectors. The CPI is among the key indicators that the Federal Reserve Board monitors for signs of inflation, so the CPI can offer clues about the direction of interest rates. A larger-than-expected increase in the CPI tends to have a negative effect on stock prices, because it raises fears that the Fed will tighten monetary policy and slow the economy. The CPI itself has an impact on price levels, because it is used to adjust payments to individuals, such as cost-of-living wage adjustments. The CPI is compiled by the Bureau of Labor Statistics within the Department of Labor, which releases the report on or about the 15th of each month at 8:30 AM.



Rate this CPI definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use